Conference Paper

The admission to the EU will considerably reduce the transaction costs of the Macedonian companies, because of the elimination of the current obstacles and the required adjustment of most of the administrative and business procedures to those applied to the EU. The market of placing their products will increase to over 500 million people. Such market will induce development of the so-called economy of scale of the domestic companies, the need for specialization of their products and introduction of innovations in their businesses. The admission to the EU will provide a significant opportunity for the RM to become a part of the “Euroland”, which will further encourage positive developments in the domestic economy. As an EU member state, the RM willimprove its international relations, particularly with the IMF, the World Bank, the UN, the World Trade Organization, etc. As a result, its international rating will be higher, opening the doors for more intensive cooperation with the potential international investors in the RM. The admission to the EU will entail introduction of Schengen visa regime for the Macedonian companies and citizens, enabling them to move freely throughout the “Schengen zone” and to use the benefits offered by the rich EU capital and labor markets.